Double Ed Deposit Expanded and New Zinc-rich Massive Sulphide Intersected
Symbol: KRE: TSX - V
"FRANKFURT - BERLIN- 878 985"
VANCOUVER, Dec. 13 /CNW/ - KENRICH-ESKAY MINING CORPORATION (the "Company") has now received assays from the final 28 diamond drill holes from Phase 2 of its 2006 exploration program on the Coastal Copper Project, near Anyox, BC. Phase 2 diamond drilling has focused on expanding the Double Ed copper-rich volcanogenic massive sulphide deposit and on testing numerous geophysical anomalies revealed by the 2006 AeroTEM II airborne geophysical survey.
Drilling continues to expand the Double Ed deposit
Results of drillholes DE06-01 to -19 from the Double Ed deposit were reported in previous news releases of July 14, August 15 and October 30, 2006; results of holes DE06-20 to -27 are reported herein.
The 27 diamond drill holes from the 2006 program are located on four east-west cross-sections at Double Ed and define a massive sulphide zone with dimensions of 200 metres north-south by up to 300 metres downdip, with true thicknesses from 2 metres to greater than 15 metres. The zone remains open in all directions; along strike to the north and south as well as up and down dip. Notably all four cross-sections of drilling have shown two steeply dipping and roughly parallel massive sulphide lenses. Geological mapping and observations from drillcores suggest that these may in fact be the same mineralized horizon that has been folded. This is a positive scenario as this folding effectively increases the amount of massive sulphide mineralization in any one cross section. Ongoing geological and lithogeochemical studies are attempting to enhance this structural interpretation.
Drillhole DE06-20 tested the northernmost extension of the Double Ed lenses, to the north of holes DE06-11 to -14 reported in previous releases. While this hole did not intersect any significant mineralization, later geological interpretation suggested that the hole did not reach a sufficient depth to test the mineralized horizon. As such, hole 20 will be deepened during future drilling.
Drillholes DE06-21 to -25 were drilled on a single east-west oriented cross section located in the southernmost portion of the Double Ed deposit drilled to date by Kenrich. This drilling expands the zone by an additional 50 metres to the south. The assay results are presented in the table below. Holes DE06-23 and -24 intersected significant amounts massive, semi-massive and/or stringer sulphides in two parallel, steeply-dipping zones.
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Est. True
DDH From (m) To (m) Int.(m) Thickness Cu (%) Zn (%) Ag (g/t)
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DE06-20 no significant results(1)
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DE06-21 no significant results
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DE06-22 no significant results
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DE06-23 158.7 171.7 13.0 8.0 0.38 5.51 10.61
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incl. 159.6 163.6 3.9 2.4 0.50 8.35 15.79
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182.3 184.0 1.8 1.2 0.29 7.99 4.70
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DE06-24 169.0 172.0 3.0 1.9 0.11 1.96 9.49
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incl. 169.0 170.0 1.0 0.6 0.09 4.92 9.36
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190.0 217.1 27.1 17.0 0.26 0.50 14.97
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incl. 209.0 215.0 6.0 3.8 0.50 1.27 28.08
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275.0 315.2 40.2 12.0 1.22 0.19 7.37
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incl. 276.0 280.0 4.0 1.2 0.03 0.56 0.30
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292.0 299.0 7.0 2.0 2.18 0.07 7.73
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304.5 314.3 9.8 2.9 2.62 0.36 19.31
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DE06-25 no significant results(2)
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DE06-26 171.0 175.0 4.0 3.8 0.16 6.81 1.33
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incl. 314.2 318.0 3.9 2.6 0.38 0.16 6.37
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DE06-27 no significant results(3)
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(1) hole 20 stopped prematurely; hole should be extended in '07 program
(2) hole lost due to bad ground conditions prior to intersecting
prospective horizon
(3) hole lost due to bad ground conditions
While significant widths and concentrations of copper were intersected as in the previous drilling, such as the 9.8 metres grading 2.62% Cu in hole 24, perhaps even more encouraging were the above average grades and widths of zinc-rich mineralization. Hole 23 intersected 13.0 metres grading 5.51% Zn from 158.7 to 171.7 metres depth, including a higher grade 3.9 metre intercept that graded 8.35% Zn.
Holes 25 and 27 were lost due to bad ground conditions and drilling difficulties. As such, the mineralized horizons were not tested in these areas. Attempts will be made to further test these areas in future programs.
Hole DE06-26 was drilled 50 metres to the north of hole 25 to test the downdip potential of the massive sulphide mineralization intersected in hole 5 (reported in a previous release). Hole 26 returned a 4.0 metre intercept from 171.0 to 175.0 metres depth that graded 0.16% Cu and 6.81% Zn. This zinc-rich mineralization correlates with the zinc-rich zone in holes 23 and 24.
These results represent the highest and most consistent zinc grades intersected to date at Double Ed. They highlight the potential for zoned polymetallic mineralization in the Anyox camp. Massive sulphide deposits such as Double Ed are a highly attractive target due to their common high grades and their potential to contain multiple economically exploitable commodities.
Previous exploration programs outlined an historic resource of about 2 million tonnes grading 1.3% Cu and 0.6% Zn at Double Ed (these historical calculations predate National Instrument 43-101 and cannot yet be verified by Kenrich geologists and cannot be relied upon by the reader).
It is the Company's goal to establish a NI 43-101 compliant estimation of the resource at Double Ed and furthermore, to test for extensions to the massive sulphide deposit.
Drilling targets AeroTEM anomalies
While the Double Ed deposit provided the primary focus for the Company's exploration at the Coastal Copper Project in 2006, significant efforts were made to assess the potential of the rest of this large property for massive sulphide mineralization. The Company conducted an AeroTEM II airborne electromagnetic survey in March 2006. Conductive responses with co-incident magnetic-high responses occur throughout the Coastal Copper Project area.
Anomalies that were located in proximity to known mineralization or that were close to the most prospective contact between the volcanic and sedimentary rocks were preferentially targeted for drilling in 2006. Twenty drillholes, RW06-01 to -04 and LO06-01 to -16, tested these initial targets. The RW holes tested a conductive zone north of the Redwing deposit situated to the south of the Double Ed deposit (the Redwing deposit lies off the Kenrich property). The LO holes targeted geophysical conductors in the Lookout area west of Anyox Creek as well as a north-south trending zone having a coincident conductive and magnetic response located north of the Hidden Creek mine site. While this drilling did not intersect significant economic mineralization, most holes intersected appreciable amounts of stringer-style pyrite-pyrrhotite mineralization accompanied by variable hydrothermal alteration. Given that geological mapping and prospecting revealed evidence of copper-rich mineralization at surface in the Lookout area, this area will receive further exploration in 2007. Similarly, the area north of Hidden Creek will also be a high priority target in 2007 given its similar geological, geophysical and geochemical characteristics to the major deposits that were mined a short distance to the south.
It should be noted that the Coastal Copper Project area contains 20 kilometres of the most prospective volcanic-sedimentary contact that hosts the bulk of known massive sulphide mineralization in the Anyox camp. As such, this drilling should be viewed as just the start of an ongoing concerted effort by the Company to systematically explore all of this exciting area. Numerous other geological, geochemical and geophysical targets remain untested and will be targeted aggressively with future programs.
Additional drill results pending from the Corey Project
As reported in the previous news release, fieldwork for the 2006 season has been completed at both the Coastal Copper and Corey projects. This release has reported on the balance of the 50 drillholes from the Coastal Copper project (note that a previous release reported that 51 holes were drilled at Coastal Copper; 50 drillholes were in fact completed there). However, results from 21 drillholes at Corey are still pending. Some geochemical and assay results have been received and will be reported in the near future following their interpretation by the Company's geological team.
Overall, the Company geologists have been very encouraged by the results at both Corey and Coastal Copper and look forward to following up this work with another aggressive drill program in 2007.
The information contained in this document has been reviewed by Sean McKinley, M.Sc., P.Geo., a Qualified Person as defined by National Instrument 43-101.
The Company further announces that it is making application to the TSX Venture Exchange in order to extend the term of 250,000 private placement warrants from December 30, 2006 to February 6, 2007. The original term of these warrants was one year. The exercise price of these warrants is $1.25.
On behalf of The Board of Directors of Kenrich-Eskay Mining Corporation.
"Wally E. Boguski"
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Wally E Boguski,
President, CEO, Director
This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporation's control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.
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